Crane Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $7 of variable costs to make During April, 1000 drives were sold. Fixed costs for March were $2 per unit for a total of $1000 for the month. What is the contribution margin ratio? 35% 45% 65% 55%

Crane Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $7 of variable costs to make During April, 1000 drives were sold. Fixed costs for March were $2 per unit for a total of $1000 for the month. What is the contribution margin ratio? 35% 45% 65% 55%

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Crane Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $7 of variable costs to make.
During April, 1000 drives were sold. Fixed costs for March were $2 per unit for a total of $1000 for the month. What is the
contribution margin ratio?
Ⓒ35%
Ⓒ45%
O 65%
55%

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